coal-fired plants will increase the demand for carbon credits, and their price will increase as a result.

While the price of coal versus natural gas might make it more economical to run the coal-fired generators, the higher cost of carbon credits to cover the firing of the coal might make it more expensive to fire the coal generators once the cost of the credits are factored into the spark spread. As a result, natural gas, even when it is considered expensive in comparison to coal, still might be the fuel of choice when viewed in terms of the clean spark spread.

An electric generator’s spark spread may not have to be completely beholden to the cost of carbon credits on the open market. Generators might be able to increase the clean spark spread, regardless of the cost of fuels or credits, if they participate in emissions reduction projects, such as biogas programs. Typically, these programs use methane captured from manure management

programs in feed lots and dairy production facilities. Power generators could participate in manure management programs to capture the methane, clean it, enrich it so that it can burn in an efficient manner and use this methane as a way to run some or all of its generation capacity. By capturing the methane in a manure management program, the electric generator would create carbon credits that it could apply to its own operations. Because the credits would come from the manure management program that the electric generator owned or in which it was an investor, the generator might obtain these credits for free or at a reduced cost. These “free” or relatively inexpensive carbon credits would increase the clean spark spread. Electric generators may also be able to engage in waste heat recovery programs and other internal emissions reduction projects in order to reduce emissions and create credits that can be used to counter the emissions generated during

power generation. Credits created through these types of programs could also be used to increase the clean spark spread, regardless of whether the generator is burning coal or natural gas.

In light of the current potential regulatory environment and the impact new legislation will likely have on the costs of producing electricity, electric generators should begin to plan on ways to account for the cost of carbon credits in the spark spread calculations. Generators should also evaluate the local area to determine whether off-take of gas from manure management programs is possible, evaluate whether participation in some other type of emissions reduction projects, such as waste heat recovery, is feasible, or consider investing in new processes or equipment that will result in the most efficient method for generating electricity. By planning ahead, electric generators can protect against a large negative clean spark spread come 2012.

WEBCAST

SKYWIRE PRESENTS

How Transforming a Bill

Can Translate to Profitability

Billing represents an operating expense, as well as a major revenue stream. In reality, a well-designed bill design and fulfillment program also acts as an extension of your utility company - offering a chance to interact with customers to enhance payment timing, cross-sell and increase retention - while reducing related costs.

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In this Webinar, we will explore some recent trends in billing and how, with the right technology, simple billing statements can be transformed into highly personalized correspondence. Additionally, NSTAR, the largest Massachu-setts-based, investor-owned electric and gas utility company, will explain how it has realized its vision of bill transformation with innovative help from Skywire Software. Hear how it is maximizing the value of billing statements, responding more quickly to customers, and increasing customer satisfaction.

Presented by:
Lisa Carloni, Director of Planning, NSTAR
Brent Argyle, Regional Director, Strategic Markets Sales, Skywire Software

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